Dermal condensation is crucial for morphogenesis of skin appendages. Although mechanisms for condensation have been elucidated for other systems such as bone, the precise molecular basis for hair follicle dermal condensation are not known. Historical studies have described expression of CD44 and hyaluronan (HA) during early hair follicle morphogenesis. Through microarray analysis, we have uncovered new evidence that this mechanism may play a key role in formation of the dermal condensate. There is increasing evidence from the literature that CD44 acts as a component of developmental signaling pathways as well as functioning as the major receptor for HA.